3.1 Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following: 3.1.1 The rate at which inventory is sold 3.1.2 The ratio of the company's net profit to its total revenue. 3.1.3 A comparison of the company’s long-term debt to its equity. Answer the following questions above by using the information below: Disney Limited Statement of Comprehensive Income for the year ended 31 December 2021 R Sales 1 960 000 Cost of sales 1 240 000 Operating profit 472 000 Interest expense 48 000 Profit before tax 424 000 Profit after tax 305 280 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2021 (R) 2020 (R) Assets Non-current assets 2 320 000 1 960 000 Inventories 720 000 440 000 Accounts receivable 360 000 500 000 Cash and cash equivalents 440 000 340 000 3 840 000 3 240 000 Equity and liabilities Equity 2 960 000 2 040 000 Non-current liabilities 480 000 820 000 Accounts payable 400 000 380 000 3 840 000 3 240 000 Additional information 1. The profit after tax for the year ended 31 December 2020 was R240 000. 2. All purchases and sales of inventories are on credit
3.1 Calculate the ratio (expressed to two decimal places) for 2021 to reflect each of the following:
3.1.1 The rate at which inventory is sold
3.1.2 The ratio of the company's net profit to its total revenue.
3.1.3 A comparison of the company’s long-term debt to its equity.
Answer the following questions above by using the information below:
Disney Limited
Statement of Comprehensive Income for the year ended 31 December 2021
R
Sales 1 960 000
Cost of sales 1 240 000
Operating profit 472 000
Interest expense 48 000
Profit before tax 424 000
Profit after tax 305 280
2021 (R) 2020 (R)
Assets
Non-current assets 2 320 000 1 960 000
Inventories 720 000 440 000
Cash and cash equivalents 440 000 340 000
3 840 000 3 240 000
Equity and liabilities
Equity 2 960 000 2 040 000
Non-current liabilities 480 000 820 000
Accounts payable 400 000 380 000
3 840 000 3 240 000
Additional information
1. The profit after tax for the year ended 31 December 2020 was R240 000.
2. All purchases and sales of inventories are on credit
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